Danfoss India records double-digit growth in H1, confident of doubling sales by 2025

H1 growth of Danfoss: Danfoss India is a market leader in heating, ventilation, and air-conditioning systems. Danfoss India has witnessed vital growth in the domestic market and the company is confident of doubling its sales by 2025 and will be implementing new strategies. Danfoss continues to see strong performance and stability, especially in its various verticals which are the Climate Solutions, Drives, and most of the Electrification businesses.

Danfoss India is a subsidiary of the Denmark-headquartered company. A spokesperson said, “The Indian market is the fastest-growing region for the Danfoss Group with strong double-digit growth in H1 driven by increasing opportunities in energy efficiency and electrification.”

The Denmark-headquartered company, Danfoss Group recorded a half-year EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of Euro 533 million corresponding to an EBITDA margin of 10.6 per cent, as against 12.4 per cent last year. The company sales have amounted to Euro 5 billion.

Danfoss Group is currently led by the rapid expansion of data centres and commercial buildings, Danfoss India is experiencing strong growth in its sales due to various factors. The government's substantial impulse towards de-carbonisation, coupled with other initiatives like the Production-Linked Incentive (PLI) schemes, is further enhancing the growth momentum.

Danfoss India President Ravichandran Purushothaman said, "India continues to be the fastest growing region for Danfoss group, and we are proud to be at the forefront of the country's sustainable transformation,"

Danfoss Group is considering strategic alternatives to reduce its cost base. The expected growth and profitability performance will depend on various factors such as global supply chain stability, the geopolitical environment, and general global growth rates.

Danfoss Group has been implementing an updated operating model to support its growth in its long-term strategy. This implementation is to enhance innovation and improve performance. This updated operating model aims to establish more robust end-to-end responsibility, increase cost competitiveness, and accelerate decision-making across the company.

The activity levels in Europe and China have continued to be subdued and are expected to remain like this for the rest of the year, while there are signs of a slowdown shown by the US. India continues to demonstrate strong growth momentum.

(with PTI inputs)